The Korea Local Administration Review

This paper investigates factors and results of low birth rate and aging society by metropolitan areas and local districts and looks for policy meanings by comparing them. In order to do this, this paper developed and measured the intermediation models. The results shows that five intermediation models work in the part of low birth rate; six intermediation models work in the part of aging society. The main factor of decreasing birth rate was the increase of the private education cost in both metropolitan areas and local districts. In the case of aging society, variables of income and leisure facilities affects aging index negatively in the metropolitan areas, while influences it positively in the local districts. The results of this research show that the factors of increasing productive welfare spending are local income, private education expenditure, marriage age of female in metropolitan areas, while the factors of increasing productive welfare spending are local income, number of local doctors, leisure facilities in local districts. This means that local policies for low birth rate and aging policies of metropolitan areas and local districts should be developed separably in order to stimulate regional economic growth.

□ Keywords: Low Birth Rate, Aging, Welfare Spending, Intermediation Model, Low Birth Rate Factor, Aging Factor